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Feels like there's also a practice for a couple of years where companies raise prices in line with inflation, but keep annual employee COLA raises pinned to the

by tyingq 2y ago

Feels like there's also a practice for a couple of years where companies raise prices in line with inflation, but keep annual employee COLA raises pinned to their typical 2-3% historical rate.

lupire 2y ago
What private companies have COLA raises? Corporate raises have been 0%.
- tyingq 2y ago
  It's pretty common from my experience, for Fortune 500 type companies to do an annual raise of 2-3% for employees that is not tied to a promotion. They may not call it a "COLA" raise, but that's what it is. Though, yes, I'm sure some have frozen that in recent years. Edit: Okay here's an example: https://www.imercer.com/articleinsights/2024-first-quarter-us-comp-planning https://www.imercer.com/articleinsights/2024-first-quarter-u... Note that they talk about it being a "merit raise", but that's sort of double talk. It's the budget for raises that aren't tied to a promotion. So the pool amount is 3.5%-ish, and you get some leeway to personalize it a bit..some people get 0%, some 2%, some 5%, etc. But it's just a COLA in disguise where most people get just under the pool percentage. Meaning most people get 2.5-3% or so. Mercer gets their data from roughly 500 companies of varying sizes. And, yes, I'm sure there are some places that don't give any sort of annual COLA type raises at all.
  - ttmb 2y ago
    When a company says "cost of living" they mean their own, not their employees. So-called COLA adjustments are for Cost of Hiring, or Cost of Employee Retention. The distinction is that it is calculated based on minimizing unwanted attrition due to wage competition elsewhere, and has nothing to do with how much rent or milk prices may have increased.
  - consp 2y ago
    > It's pretty common from my experience, for Fortune 500 type companies to do an annual raise of 2-3% for employees that is not tied to a promotion That's not what I've heard but then again n=1. No inflation correction because [insert snarky comment about c-suite compensation].
- HenryBemis 2y ago
  Everywhere I worked in my life (perm employment) I was getting at least the inflation. If performance (personal + corp) was well, I was getting an extra 3%-5% and bonus. (in the EU)
- rco8786 2y ago
  > Corporate raises have been 0%. And data to back this up? Does not match my personal experience at all.
  - malfist 2y ago
    Amazon did that this year and last year. But they're probably an exception not a rule.
bawolff 2y ago
This is just normal economics when (real) value of labour goes down. Hardly a new practise.

by tyingq 2y ago

Feels like there's also a practice for a couple of years where companies raise prices in line with inflation, but keep annual employee COLA raises pinned to their typical 2-3% historical rate.

lupire 2y ago

What private companies have COLA raises? Corporate raises have been 0%.

tyingq 2y ago
It's pretty common from my experience, for Fortune 500 type companies to do an annual raise of 2-3% for employees that is not tied to a promotion. They may not call it a "COLA" raise, but that's what it is. Though, yes, I'm sure some have frozen that in recent years. Edit: Okay here's an example: https://www.imercer.com/articleinsights/2024-first-quarter-us-comp-planning https://www.imercer.com/articleinsights/2024-first-quarter-u... Note that they talk about it being a "merit raise", but that's sort of double talk. It's the budget for raises that aren't tied to a promotion. So the pool amount is 3.5%-ish, and you get some leeway to personalize it a bit..some people get 0%, some 2%, some 5%, etc. But it's just a COLA in disguise where most people get just under the pool percentage. Meaning most people get 2.5-3% or so. Mercer gets their data from roughly 500 companies of varying sizes. And, yes, I'm sure there are some places that don't give any sort of annual COLA type raises at all.
- ttmb 2y ago
  When a company says "cost of living" they mean their own, not their employees. So-called COLA adjustments are for Cost of Hiring, or Cost of Employee Retention. The distinction is that it is calculated based on minimizing unwanted attrition due to wage competition elsewhere, and has nothing to do with how much rent or milk prices may have increased.
- consp 2y ago
  > It's pretty common from my experience, for Fortune 500 type companies to do an annual raise of 2-3% for employees that is not tied to a promotion That's not what I've heard but then again n=1. No inflation correction because [insert snarky comment about c-suite compensation].
HenryBemis 2y ago
Everywhere I worked in my life (perm employment) I was getting at least the inflation. If performance (personal + corp) was well, I was getting an extra 3%-5% and bonus. (in the EU)
rco8786 2y ago
> Corporate raises have been 0%. And data to back this up? Does not match my personal experience at all.
- malfist 2y ago
  Amazon did that this year and last year. But they're probably an exception not a rule.

bawolff 2y ago

This is just normal economics when (real) value of labour goes down. Hardly a new practise.